ChiFRA

EUROPEAN COURT OF JUSTICE RULES AGAINST SPAIN’S MODELO 720 FOREIGN ASSET LAW INCLUDING SYSTEM OF EXCESSIVE FINES.

Spanish government to make changes after binding Luxembourg verdict.  EUROPE’S top court says Spain broke EU laws by imposing harsh penalties on Spanish residents who failed to declare property and bank accounts they held abroad.

This Christmas our sponsors, Blevins Franks have written a thought provoking article and to give you a flavour I have picked out some interesting facts - but I recommend you read the whole article - click on the word "Finance" just below our sponsors logo. 

How long does it take to earn money for yourself instead of the taxman? "Tax freedom day" varies greatly by country- What with income tax, national insurance/social security, capital gains tax, VAT, council tax, excise duties and so on, a considerable amount of our income goes straight to the taxman each year.   

The Institut Economique Molinari has been measuring taxes payable across EU member states. Its 2021 edition has been given a global expansion to include Australia, Brazil, Canada, Japan and the USA. This brings the total number of countries studied to 34, collectively representing 58.2% of the global economy.

The study calculates a “tax liberation day” for each member state – the date on which an employee has earned enough to pay off all taxes for the year - according to the study, Spain’s tax freedom day fell on 9^th June, a day later than last year, pushing Spain to 11^th place in the European rankings.

The average gross salary in Spain is €35,771, but after the real tax rate of 43.71%, workers in the country are only left with €20,137 to spend on themselves and their families. The UK takes the third European spot on 11^th May. This is the latest date for the UK since comparable records began in 1995.

Although less than half of the EU’s 448 million citizens are currently in the labour force, the report states that “A great recovery has begun, jobs are becoming available, and new advances in teleworking make employment possible for a greater number than ever before”.  

Happy reading 

Dave Fisher